Where do Japan’s deficit and debt come from?
The most indebted and oldest country of the developed world: public revenue and spending since 2005, and thirty years of deficits since the end of the bubble.
Scope: Japanese general government (central government, local government, social security), national accounts, calendar years, OECD (2005 →) and IMF (1980 →) data. · Data as of Oct 27, 2026.
Public spending · 2024¥246tn38.7% of GDP
Public revenue · 2024¥235tn37.1% of GDP
Deficit · 2024−¥10.6tn−1.7% of GDP
Gross public debt · end of 2024218.5%of GDP
Key takeaways
- In 2024, Japanese general government spent ¥246tn (38.7% of GDP) against ¥235tn of revenue (37.1%): a deficit of ¥10.6tn, or 1.7% of GDP. Gross debt stands at 218% of GDP, but the State also holds large assets: its debt net of financial assets is 84% of GDP.
- The debt was built over thirty years of deficits: 63% of GDP in 1990, 236% in 2019 and a peak of 258% in 2020 (IMF). After the bubble burst in the early 1990s the public balance stayed in the red, with troughs at −9% of GDP in 2010 and 2020.
- Ageing is the fastest in the developed world: people aged 65+ went from 20.3% to 29.8% of the population between 2005 and 2024. Over the same period health gained +1.6 points of GDP, family, housing and exclusion +1.5, pensions +1.3.
- But Japan raised its taxes: the consumption tax went from 5% to 8% in 2014, then to 10% in 2019, and now brings in 4.9% of GDP against 2.4% in 2005; social contributions rose from 9.9% to 13.1%. Revenue grew faster than spending (+6.7 points against +4.0), so the deficit shrank from −4.4% to −1.7% of GDP since 2005.
- Interest stays low despite the debt: 1.5% of GDP in 2024, against 2.2% in 2005, thanks to rates kept near zero by the Bank of Japan. Rising rates are the main risk. Social security runs a surplus (+1.2% of GDP); the central government carries the deficit (−3.0%).
Revenue and spending, year by year
For each year: left bar = revenue (grey), right bar = spending (colours), stacked by type. The gap between the two bars is the deficit. Tap an item in the legend to isolate it. Amounts in trillions of yen. Japan does not publish household and corporate income taxes separately.
Unit
Spending by
Since
Spending
Revenue
What widened (or narrowed) the deficit
Change of each item in points of GDP between two years. Spending that rises, or revenue that falls, widens the deficit (bar to the left); revenue that rises narrows it (bar to the right).
Compare
Public balance: −4.4% of GDP in 2005, −1.7% in 2024, a change of +2.7 points. Contribution of spending: −4.0 pt; of revenue: +6.7 pt.
- Pensions
- Health
- Other social benefits
- Interest on debt
- Education
- Economic affairs
- Other public spending
- Revenue
← widens the deficitnarrows it →
Detail by item · 2005 → 2024
| Detail by item | Side | 2005 | 2024 | Change (pt) | Effect on balance (pt) |
|---|---|---|---|---|---|
| Health (hospitals, outpatient care, medicines) | Spending | 5.97 | 7.59 | +1.61 | −1.61 |
| Family, housing benefits, social exclusion | Spending | 1.50 | 2.97 | +1.47 | −1.47 |
| Pensions (old age + survivors) | Spending | 10.24 | 11.54 | +1.30 | −1.30 |
| Other taxes on production (property, energy, alcohol, tobacco…) | Revenue | 4.64 | 3.79 | −0.85 | −0.85 |
| Economic affairs (transport, business support, energy) | Spending | 3.74 | 4.23 | +0.49 | −0.49 |
| Other revenue (sales, property income, transfers) | Revenue | 4.30 | 3.88 | −0.43 | −0.43 |
| Defence, police, justice | Spending | 2.04 | 2.45 | +0.42 | −0.42 |
| Sickness and disability benefits | Spending | 0.72 | 0.94 | +0.22 | −0.22 |
| Unemployment | Spending | 0.29 | 0.27 | −0.02 | +0.02 |
| Education | Spending | 3.38 | 3.26 | −0.12 | +0.12 |
| Environment, community amenities, culture | Spending | 2.46 | 2.16 | −0.30 | +0.30 |
| Capital taxes (inheritance…) | Revenue | 0.24 | 0.56 | +0.32 | +0.32 |
| Other current taxes (wealth…) | Revenue | 1.34 | 1.68 | +0.34 | +0.34 |
| General services (excluding debt) | Spending | 2.14 | 1.78 | −0.35 | +0.35 |
| Interest on debt | Spending | 2.22 | 1.54 | −0.68 | +0.68 |
| Taxes on income and profits (households and companies) | Revenue | 7.46 | 9.18 | +1.72 | +1.72 |
| Consumption tax (VAT) | Revenue | 2.41 | 4.91 | +2.50 | +2.50 |
| Social contributions | Revenue | 9.91 | 13.06 | +3.15 | +3.15 |
| Total revenue | Revenue | 30.30 | 37.05 | +6.75 | +6.75 |
| Total spending | Spending | 34.69 | 38.73 | +4.03 | −4.03 |
| Balance | Balance | -4.39 | -1.68 | +2.71 | +2.71 |
The drivers
Pensions, health and family
Public spending on pensions, health and family / housing / exclusion, % of GDP.
- Pensions · 11.5% (2024)
- Health · 7.6% (2024)
- Family, housing, exclusion · 3.0% (2024)
The demographic driver
Share of people aged 65 and over (%), World Bank, since 1980.
- Aged 65+ · 29.6% (2023)
Public balance since 1980
% of GDP, IMF (observed years). Negative = deficit.
- Balance · −2.3% (2023)
Public debt since 1980
% of GDP, IMF. Gross debt, and debt net of the financial assets held by the State.
- Gross debt · 240.0% (2023)
- Net debt · 136.0% (2023)
What the debt costs
Interest paid by general government, % of GDP.
- Interest · 1.5% (2024)
Who carries the deficit?
Balance by level of government, % of GDP.
- Central government · −3.0% (2024)
- Local government · 0.4% (2024)
- Social security · 1.2% (2024)
Yearly data
Show the table of revenue, spending, balance and debt by year
| Year | Revenue | Spending | Balance | Balance (% of GDP) | Debt (% of GDP) |
|---|---|---|---|---|---|
| 2024 | ¥235tn | ¥246tn | −¥10.6tn | −1.7% | 218.5% |
| 2023 | ¥227tn | ¥241tn | −¥14.4tn | −2.3% | 231.0% |
| 2022 | ¥219tn | ¥243tn | −¥24.5tn | −4.2% | 242.4% |
| 2021 | ¥209tn | ¥245tn | −¥36.3tn | −6.3% | 245.2% |
| 2020 | ¥199tn | ¥249tn | −¥50.1tn | −9.0% | 250.1% |
| 2019 | ¥199tn | ¥216tn | −¥17.4tn | −3.0% | 229.2% |
| 2018 | ¥199tn | ¥213tn | −¥13.9tn | −2.4% | 229.1% |
| 2017 | ¥194tn | ¥211tn | −¥17.2tn | −3.0% | 225.5% |
| 2016 | ¥191tn | ¥211tn | −¥19.9tn | −3.6% | 226.6% |
| 2015 | ¥189tn | ¥209tn | −¥20.0tn | −3.6% | 228.8% |
| 2014 | ¥178tn | ¥207tn | −¥29.5tn | −5.6% | 230.4% |
| 2013 | ¥166tn | ¥205tn | −¥39.2tn | −7.6% | 227.2% |
| 2012 | ¥160tn | ¥201tn | −¥41.6tn | −8.2% | 224.6% |
| 2011 | ¥155tn | ¥200tn | −¥45.2tn | −9.0% | 216.6% |
| 2010 | ¥153tn | ¥199tn | −¥46.2tn | −9.1% | 202.7% |
| 2009 | ¥151tn | ¥200tn | −¥48.1tn | −9.6% | 197.8% |
| 2008 | ¥166tn | ¥188tn | −¥21.7tn | −4.1% | 176.5% |
| 2007 | ¥171tn | ¥187tn | −¥15.6tn | −2.9% | 172.7% |
| 2006 | ¥169tn | ¥185tn | −¥16.2tn | −3.0% | 171.1% |
| 2005 | ¥163tn | ¥186tn | −¥23.6tn | −4.4% | 170.9% |
Sources and method
- OECD, government accounts. Table 12: total revenue and spending, detail of taxes and contributions, spending by nature, balance by level of government. Table 11: spending by function (COFOG). Japan’s national accounts (ESRI) reported to the OECD, calendar years, available from 2005.OECD Table 12OECD Table 11 (COFOG)
- OECD, financial dashboard. General government gross debt and net financial worth, % of GDP.OECD Financial dashboard
- IMF, World Economic Outlook (April 2025). Public balance, gross debt and net debt since 1980, observed years only (up to 2023). IMF definition: levels differ slightly from the OECD’s.IMF WEO (DBnomics)
- World Bank. Share of people aged 65 and over.World Bank SP.POP.65UP.TO.ZS
- Method. Constant yen: current yen adjusted by the GDP deflator (yen of the latest year). Pensions = old age (GF1002) + survivors (GF1003); health = GF07; interest = GF0107. The gap between the COFOG total and total spending is put in “General services”.
- Further reading. Ministry of Finance, ESRI national accounts (Cabinet Office), Bank of Japan.Ministry of FinanceESRI (Cabinet Office)Bank of Japan